When it comes to scams, there are more than 40% financial scams that are recorded per year and most of those happen due to our own negligence. Often, we blindly share OTPs with others or download apps from unverified links, which makes us vulnerable to fraud.
Isn’t it our mistake?
These scammers are well aware of our habits and exploit them for their own gain. The recent case we encountered wasn’t about trading tips. Instead, it involved a fake trading app designed to deceive users.
We talk about clone apps but apart from that there are other fake apps too. Before going further, have a look at what the case was.
So, it happened with Sakshi (name changed) who was made to invest in an IPO but the app which was suggested was actually fake. Here are a few highlights of what actually happened with her.
Sakshi: On April 20th, 2024, I was contacted by Namrata Dubey (name changed). She claimed to represent the Danis Enderson Group (name changed) and promised to help me earn profits by trading stocks. She added me to a WhatsApp group where people were sharing tips and the profits they earned.
ADB: That sounds promising. Did you make any profit initially?
Sakshi: Yes, initially she gave me tips for 2-3 trades that I executed using my existing demat account. I did see some profit from those trades.
ADB: So, what happened next?
Sakshi: Namrata advised me that to achieve more profit and faster transactions, I needed to download their trading app called SD TRIO. She said it was created by SD Equitysearch Company. I was also assigned a fund manager named Manish Kumar. I started trading on the app from May 2nd, 2024.
ADB: And did the app seem legitimate at first?
Sakshi: It did, until May 16th, 2024. I noticed an IPO subscription available in the app. I questioned it because this wasn’t the usual process for IPOs. They told me it was due to institutional allocation.
ADB: Institutional allocation? That sounds fishy. What did you do?
Sakshi: For the first IPO, I had a shortfall, which I covered by raising funds. The IPO gave me substantial returns upon listing. However, when I closed that IPO position, my funds were frozen in the SD TRIO account because I received an allotment for a second IPO on the same day.
ADB: Frozen funds? That’s alarming. What did they say?
Sakshi: They told me that until I paid back the shortfall they arranged, I couldn’t withdraw from my SD TRIO account.
ADB: So what did you do next?
Sakshi: I went to the SD Equitysearch office to get some clarity. That’s when they informed me that the app was fake.
ADB: Oh no, that’s terrible! It seems like a well-planned scam.
Sakshi: Yes, it was. I hope others can learn from my experience and be more cautious about these too-good-to-be-true schemes.
It is time to keep stay alert while clicking on any link, downloading any app and making any payment. The first step towards saving yourself from financial and stock market scams is to stay active and identifying red flags.
